Trump says deal on data centers will lower electricity prices as tech companies vow to cover costs

President Donald Trump invited technology companies to the White House on March 4, 2026, to commit to developing their own power generation for AI data centers amid growing public concern over rising electricity prices that threaten to escalate with the artificial intelligence boom. Trump's "ratepayer protection" pledge comes as affordability has become a top concern for Americans wary of the AI buildout potentially leading to higher utility bills. The president first announced this initiative during his State of the Union address last month but had provided few details at that time. Communities across the nation have seen a backlash against data centers over fears about rising electricity prices and environmental concerns about pollution and water consumption. This opposition to rising power prices was also a key factor in Democratic wins in recent elections in states including Georgia, Virginia and New Jersey. The seven major tech companies that committed to the pledge include Google, Microsoft, Meta, Oracle, xAI, OpenAI and Amazon. Under the terms of the agreement, these companies will build or purchase new power generation sources for their data centers and cover the expense of necessary infrastructure upgrades. The companies also have the option to sell excess power generation to utilities for public consumption and negotiate separate rate structures with public utilities and states to ensure expenses are not passed on to consumers. Additionally, they commit to making backup generation available during emergencies and to hire locally for their data center expansion projects. Despite Trump's assurances that the pledge will prevent electricity price increases, energy experts have expressed skepticism about whether these promises can slow down the rapidly rising electricity costs, which have climbed 6.3% over the past year according to the Labor Department's Consumer Price Index. The president acknowledged that demand for energy will triple by 2035 primarily due to AI, necessitating a dramatic increase in power plant construction. However, while construction spending on power generation jumped in 2022, it has slightly decreased after peaking in October 2023. Trump has also sought to cancel wind power projects while promoting coal as an energy source, despite its contribution to climate change. Critics note that the voluntary agreement lacks enforcement mechanisms and ratepayers have no way to verify whether tech companies will keep their promises, with environmental groups like Evergreen Action dismissing it as a "photo op" rather than substantive policy.